UK startup Wonga has received £3m in funding for its upcoming quickfire online loans service.
The soon-to-be-launched UK site says it will give decisions on whether to loan money to borrowers within 30 minutes, faster than any other loan provider.
Wonga says will loan amounts of between £200 and £1,000, with all applicants credit checked beforehand. Borrowers are charged a transaction fee of £25 and interest of 1% per month, which equates to 13.8% APR.
First time users can only borrow £200, but the amounts increase as previous loans are paid off and users build up trust on the site. The loans are short-term, over a 30 day period.
The attraction of the service is the speed with which decisions are made and the loan is paid out – loans can be approved and paid out within the hour.
The funding round was led by Balderton Capital and also involved Betfair, Setanta, and the Accelerator Group. The site is currently in closed beta. Balderton Capital has also invested in online loan community Zopa.